TEB

1 Comment

    • Bernanke On Bear Reveals His Market Fears [view article]
      "What is at issue is USA's reputation as a respectable financial market ..."

      Exactly. And how do you think it looks to the rest of the world when (a) the US investment banks feed the world several trillion dollars of toxic SIVs over the past 4 years and then (b) Artificially interfere via the Fed to stop them being marked to market, thus prolonging the agony and guaranteeing a slower recovery?

      I'd say the Fed's action, while taking the easy way out and claiming to save the market from implosion, have just irreparably damaged our market's reputation as a "free" one. It's now very clear to the world that the Fed serves to preserve the wealth of the wealthy, no matter how corrupt or stupid they are.

      The Fed's actions have also pretty much guaranteed a larger meltdown in the future. Witness the "Grand Delusion Rally" that's going on right now in the market. Who are the suckers putting money into the market right now? Not the pros: the options markets seem to be eerily quiet. It's the individual investors who are pumping in their cash and who are going to get absolutely wiped when the big players pull the stops out later. Where will your hard earned retirement money have gone? It will have gone to the investment banks to (partially) cover their losses on MBSs.

      Profits are private, losses are public under the New New Deal, initiated by Reagan in the 1980s, rocketed to the moon by Greenspan, and sustained in it's orbit by Bernanke.





       Apr 04 11:54 AM
Loading...
Symbols:
Authors:
Quick Links:
Contribute an Article Become a Seeking Alpha Contributor

Transcripts

More Transcripts»